With the deepening of the impact of the financial crisis on the world economy, China’s economic growth has been suspended.
In order to alleviate the impact of the financial crisis on China's economy, on November 5, 2008, the State Council executive meeting issued 10 measures to further expand domestic demand and promote steady and rapid economic growth. Among them, accelerating rural infrastructure construction as an important policy has once again been mentioned in the policy. At present, the newly added 100 billion central investment is mainly used to accelerate the construction of people's livelihood projects, infrastructure and ecological environment. Among them, 34 billion were arranged to accelerate the construction of people's livelihood projects and rural infrastructure.
Under the circumstance of China's economic growth, it is necessary to carry out macroeconomic regulation and control through expansionary fiscal and monetary policies to promote the balance of total social supply. In 2008, China's macro-economy showed a clear transition from a partial heat to a slower growth rate. Moreover, the impact of the internationally depressed economic situation on our economy has become increasingly serious. In these deteriorating economic situations, accelerating rural infrastructure construction will undoubtedly have a positive effect on increasing rural investment, driving rural consumption, and expanding domestic demand.
At present, the rural infrastructure construction projects arranged by the state include not only major projects of national economy and people's livelihood, such as the construction of major water conservancy projects in the South-to-North Water Diversion Project and the reinforcement of dangerous reservoirs, but also important projects affecting the lives of farmers, such as rural biogas projects and rural road construction. And the rural power grid is perfect. While these important projects have improved the lives of farmers, many companies have also benefited from them.
Accelerating rural infrastructure construction can not only directly increase rural investment, but also stimulate farmers' investment, and stimulate farmers to expand consumption by improving rural living conditions. It is expected that through the country's certain scale of rural infrastructure investment, it will certainly drive the demand of farmers and other entities several times higher than the state's investment.